Walgreens Boots (NASDAQ:WBA) reported FQ2 adjusted EPS of $1.59, beating the consensus estimates of $1.37 per share.
Sales in the period came in at $33.76 billion, also above the consensus projection of $33.32 billion. The company reported U.S. sales of $27.67 billion, almost in line with the expected $27.71 billion. International sales totaled $5.56 billion, below the analyst estimates of $5.68 billion.
The pharmaceutical company reported an adjusted gross margin of 22.8%, compared with the analyst expectations of 22%. Walgreens administered 11.8 million vaccines in the second quarter, it said.
The company reported 102 co-located clinics are now open, and targets more than 200 by the CY22 year-end. It also expects to fully reopen U.S. support offices on April 4.
The company expects low-single-digit adjusted EPS growth for the full fiscal year.
"The strategic review of our Boots business is progressing, and our transformational actions are accelerating sustainable value creation," said the company's CEO Rosalind Brewer.
"The Walgreens Health segment had second-quarter sales of $527 million resulting from the acquisition of VillageMD and Shields. On a pro forma basis, compared to their year-ago standalone results, these businesses grew at a combined rate of 128% in the quarter."
Baird analyst Eric Coldwell isn't surprised by the maintained guidance.
We need to understand where the EPS base should settle out as COVID transitions to endemic in the coming quarters. Tone reads positive, including progress at Walgreens Health, but the intermediate-term is where biggest questions lie, the analyst wrote in a client note.
Evercore ISI analyst Elizabeth Anderson said that the unchanged outlook is implying a back half guide that's below the Street consensus, although she noted that Q2 was strong overall.
WBA stock is down 6% today.
By Senad Karaahmetovic